Title
Proposed Change Order No. 8
Contract No. GLWA-CS-060(SCN-0000212)
Study/Design of the Upgraded Sludge Conveyance System and Lighting Improvements at the Detroit Wastewater Treatment Plant
CIP #213007 / BEC Score: 96.20
Body
Agenda of: July 22, 2026
Item No.: 2026-259
Amount: Original Contract $ 1,990,000.00
Change Order No. 1 96,404.00
Change Order No. 2 0.00
Change Order No. 3 0.00
Change Order No. 4 0.00
Change Order No. 5 0.00
Change Order No. 6 0.00
Change Order No. 7 0.00
Proposed Change Order No. 8 250,000.00
Total Contract Amount $ 2,336,404.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 29, 2026
RE: Proposed Change Order No. 8
Contract No. GLWA-CS-060(SCN-0000212)
Study/Design of the Upgraded Sludge Conveyance System and Lighting Improvements at the Detroit Wastewater Treatment Plant
Vendor: Black & Veatch Ltd. of Michigan
Status: Amendment/Change Order
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. GLWA-CS-060(SCN-0000212), Proposed Change Order No. 8 “Study/Design of the Upgraded Sludge Conveyance System and Lighting Improvements at the Detroit Wastewater Treatment Plant” with Black & Veatch Ltd. of Michigan, at an increased cost of $250,000.00 for a total cost not to exceed $2,336,404.00 and an increased duration of 365 days for a total duration of 4,110 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Black & Veatch Limited of Michigan was awarded the original contract. The main objective of the Black & Veatch consultant services contract was to restore sludge conveyance capacity lost due to the March 2016 fire damage while providing improved sludge conveyance from each dewatering facility to improve operations and minimize future risks. To achieve that goal, evaluation study and design and construction assistance were needed.
On April 14, 2018, Black & Veatch was granted a contract Change Order No. 1 for additional design and construction assistance activities, which increased the total contract value to $2,086,404.00. The contract duration also was extended via Change Order No. 1.
On May 26, 2021, Black & Veatch was granted a contract Change Order No. 2 to extend the contract time due to delays in the related construction contract, GLWA-CON-197, caused by unforeseen conditions and the COVID-19 pandemic.
On June 22, 2022, Black & Veatch was granted a contract Change Order No. 3 to extend the contract time, due to equipment performance issues that were delaying completion of the related construction contract, GLWA-CON-197.
On July 26, 2023, Black & Veatch was granted a contract Change Order No. 4 to extend the contract time due to ongoing performance issues associated with some of the new equipment and other issues that necessitated design revisions and therefore delayed the completion of the related construction contract, GLWA-CON-197.
On January 1, 2024, Black & Veatch was granted a contract Change Order No. 5 to extend the contract time due to the ongoing performance issues with some of the new equipment and other issues that necessitated design revisions.
On December 11, 2024, Black & Veatch was granted a contract Change Order No. 6 to extend the contract time due to the ongoing performance issues in the sludge conveyance system which delayed the completion of the related construction contract GLWA-CON-197 and therefore necessitated Black & Veatch’s continued engineering services.
On February 4, 2026, Black & Veatch was granted a contract Change Order No. 7 to extend the contract time due to the ongoing performance issues in the sludge conveyance system which delayed the completion of the related construction contract GLWA-CON-197 and necessitated the engagement of third parties to establish and perform on-site system testing to determine the root cause for the previous system failures and provide recommendations for corrective actions.
Conveyor Dynamics, a conveyance system expert retained by outside counsel to GLWA, has determined the cause of the motor failure and prepared a root cause analysis report. Because the original construction contractor has ceased operations, GLWA has engaged with the construction contractor’s surety company, Liberty Mutual, about possible solutions to the cause of the motor failures. Any solution must include Black & Veatch as designer of record. This proposed Amendment No. 8 requests an additional $250,000.00 and a one-year time extension to Contract GLWA-CS-060.
JUSTIFICATION
Black & Veatch is the designer of record for the GLWA-CON-197 construction contract. First, a time extension of the current consultant services contract (GLWA-CS-060) with Black & Veatch is necessary due to ongoing performance issues with the conveyance system. Extending Contract GLWA-CS-060 will ensure uninterrupted engineering services in support of the associated construction contract, GLWA-CON-197. Second, as detailed above, GLWA has engaged the construction contractor’s surety company, Liberty Mutual, regarding a solution to and the financial responsibility of the motor failure issue. As the “designer of record”, Black & Veatch will have a role in evaluating, reviewing, and approving the agreed-upon solution. Any evaluation, review, and ultimate approval will incur additional engineering costs.
In light of the above, GLWA Wastewater Engineering recommends extending the final completion date of GLWA-CS-060 Contract, with an increase in the contract amount. An additional $250,000.00 is requested to pay Black & Veatch for any services they provide during this extended time period on a time and material basis.
PROJECT MANAGEMENT STATUS
Original Contract Time 914 days (04/29/2016 - 10/29/2018)
Change Order No.1 974 days (10/30/2018 - 06/29/2021)
Change Order No. 2 366 days (06/30/2021 - 06/30/2022)
Change Order No. 3 365 days (07/01/2022 - 06/30/2023)
Change Order No. 4 215 days (07/01/2023 - 01/31/2024)
Change Order No. 5 366 days (02/01/2024 - 01/31/2025)
Change Order No. 6 365 days (02/01/2025 - 01/31/2026)
Change Order No. 7 180 days (02/01/2026 - 08/01/2026)
Proposed Change Order No. 8 365 days (09/01/2026 - 08/01/2027)
New Contract Time 4,110 days (04/29/2016 - 08/01/2027)
PROJECT ESTIMATE
Original Contract Price $1,990,000.00
Change Order No. 1 96,404.00
Change Order No. 2 0.00
Change Order No. 3 0.00
Change Order No. 4 0.00
Change Order No. 5 0.00
Change Order No. 6 0.00
Change Order No. 7 0.00
Proposed Change Order No. 8 250,000.00
New Contract Total $2,336,404.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: 5421 - Wastewater Construction Fund
Cost Center: 880000 - Capital Improvement Program
Spend Category: Construction: Contractual Engineering Sv
Project Worktag: PRJ-213007
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract $1,990,000.00
Change Order No. 1 96,404.00
Change Order No. 2 0.00
Change Order No. 3 0.00
Change Order No. 4 0.00
Change Order No. 5 0.00
Change Order No. 6 0.00
Change Order No. 7 0.00
Proposed Change Order No. 8 250,000.00
New Contract Amount $2,336,404.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 8, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.